Updates with share moves in paragraphs 1,5

By Roushni Nair

Jan 23 (Reuters) - Insignia Financial's IFL.AX shares hit a three-year high on Thursday, driven by a revised takeover offer of A$3.07 billion ($1.92 billion) from U.S.-based Bain Capital, matching the bid of rival CC Capital Partners and fuelling a heated bidding war.

Insignia Financial had previously rebuffed an approach from private equity firm Bain Capital in late December, deeming the offer insufficient for its shareholders.

The 178-year-old Australian money manager's initial reluctance to engage with Bain Capital sparked a bidding war, with U.S.-based investment manager CC Capital Partners subsequently entering the fray.

The revised proposal from Bain Capital values Insignia Financial's shares at a 3.8% premium over their last closing price of A$4.43 each. This bid is a notable improvement over Bain's initial non-binding indicative offer of A$4.30 per share, representing a 7% increase.

In early trading, shares rose by up to 2.7% to A$4.55 per share, their highest since October 2021, albeit still below the A$4.43 per share cash offer.

Earlier this month, CC Capital Partners had upped the ante with a rival bid, seeking to gain a foothold in Australia's lucrative A$4.1 trillion superannuation system, a prize that has driven the intense bidding competition between the two suitors.

CC Capital did not immediately respond to a request for comment.

In a bid to possibly enhance their proposals, Insignia Financial has granted Bain Capital a limited duration of access to select non-public information on a non-exclusive basis. A similar offer was made to CC Capital Partners earlier this week.

"The provision of limited due diligence does not guarantee that the Bain second revised indicative proposal will result in a binding offer or one that is capable of being recommended by the Board of Insignia Financial," the company clarified.

Insignia Financial's funds under management and administration surged by A$7.2 billion to A$326.8 billion as of Dec. 31, underscoring the strong investor appetite for Australian-listed wealth managers with growing asset bases.

($1 = 1.5949 Australian dollars)

(Reporting by Roushni Nair in Bengaluru; Editing by Alan Barona)

((Roushni.Nair@thomsonreuters.com))